23 June 1999
In its decision dated 18 June 1999, Autorité de régulation des télécommunications (ART) ruled on the dispute submitted by Cegetel Entreprises on 25 January 1999, against France Telecom
- Subject of the dispute
The dispute concerns the interconnection conditions for calls originating from France Telecom, and arriving on the Cegetel Entreprises network. Specifically, Cegetel Entreprises asked ART to rule on the definition of the interconnection points to its network as well as on its remuneration for terminating calls on its network.
- ART's decisions
Regarding the first point, ART's decision stated that the Cegetel Entreprises offer had to include at least one interconnection point in each of the transit zones defined in France Telecom's catalogue. Plus, Cegetel Entreprises will have to open all interconnection points used for outgoing calls to interconnection for incoming traffic.
Regarding interconnection tariffs, the specific nature of Internet traffic leads ART to decide that the Cegetel Entreprises offer should include two aspects: one for Internet traffic and one for other traffic (i.e. telephone traffic):
- For Internet traffic, with regard to France Telecom revenues for this type of traffic and corresponding costs for both operators, ART established Cegetel Entreprises's interconnection tariff at FRF 3.8 per minute
- For telephone traffic, ART defined an equitable method which sets a tariff of FRF 10.2 per minute for 1999.
In both cases, ART considered that Cegetel Entreprises was right, at this stage in the development of the market and of its network, to not suggest time modulation for its interconnection tariffs.
ART also granted France Telecom and Cegetel Entreprises a period of four weeks to bring their interconnection agreement in line with this decision.
- Decisions favouring the development of Internet in France
These decisions favour the development of competition on the local loop and provide visibility to players by establishing interconnection conditions until the end of the year 2000. Moreover, they are part of a coherent plan for Internet access.
Indeed, in its favourable opinion on the FRF 100/20 hours tariff, subject to certain conditions, ART asked France Telecom to include an indirect interconnection offer to its catalogue. It also launched an additional call for comments on Internet access.
All these decisions favour Internet development in France since they do not prevent operators from repaying Internet Service Providers (ISPs) and give operators the possibility of access to the end customer (indirect interconnection).